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Opinion

Australia throws good money after bad propping up local oil refineries

Canberra should know by now that "fuel security" is a mirage

| Australia
Scott Morrison's assertion that the aid package will secure a "boost to Australia's long-term fuel security by locking in the future" of its refining sector seems less plausible.   © AP

Vandana Hari is founder of Singapore-based Vanda Insights, which tracks energy markets.

The Australian government's recent decision to fork out $1.8 billion to keep the country's last two refineries running for another decade is a surprisingly regressive step for a free-market economy. It could also send the wrong signal to the world of private enterprise, which thrives on creative destruction.

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